{"id":103088,"date":"2022-10-07t12:00:18","date_gmt":"2022-10-07t16:00:18","guid":{"rendered":"\/\/www.g005e.com\/?p=103088"},"modified":"2024-08-14t09:30:08","modified_gmt":"2024-08-14t13:30:08","slug":"commissions-and-contingencies-can-be-ethical","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/10\/07\/commissions-and-contingencies-can-be-ethical\/","title":{"rendered":"ethics question: commissions and contingencies"},"content":{"rendered":"

\"statue<\/a>follow the standards.<\/strong><\/p>\n

by august j. aquila<\/i><\/a><\/p>\n

in the old days you could go into a shoe store and purchase sneakers or gym shoes. nowadays, there are tennis shoes, running shoes, cross trainers, aerobic shoes, basketball shoes, soccer shoes and the list goes on and on.<\/p>\n

more: <\/b>make the value curve work for you<\/a> | how utility and value affect pricing<\/a> | the four phases of service life<\/a> | marketing orientation is what firms need<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

perhaps the billable hour paradigm soon will go the way of the gym shoe. accountants need to realize that in pricing their services, one pricing method will no longer do. as with athletic shoes, accounting and consulting services can be priced in many different ways.
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\nmany professionals believe that pricing arrangements other than on a fee-per-hour basis are unethical or illegal. it is necessary, therefore, to make the following distinction: if someone is going to be unethical, it will not be a result of the billing method he or she uses. there is no intent here to encourage or suggest unethical billing; without question, charging a client for six hours of work when only four hours were performed is unethical.<\/p>\n

\u201cthe moment you make a mistake in pricing, you\u2019re eating into your reputation or your profits.\u201d \u2013 katharine paine<\/p><\/blockquote>\n

independence and objectivity are the two key elements that are of the most concern to accountants when they think about alternative billing methods. commissions, contingency fees, success fees and the like can be acceptable in some cases as long as:<\/p>\n

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  1. the client is aware of the fee arrangement before the start of the engagement.<\/li>\n
  2. the arrangement complies with the rules of conduct of the aicpa and the relevant state cpa society and state board of accountancy.<\/li>\n<\/ol>\n

    discussion of rule 302, \u201ccontingent fees\u201d<\/strong><\/p>\n

    the aicpa defines a contingent fee as \u201ca fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service.\u201d<\/p>\n

    the following is an extract from the aicpa professional standards, rule 302, \u201ccontingent fees.\u201d<\/p>\n

    a member in public practice shall not<\/p>\n